One reason to require licensing of attorneys is that
A. legal services are a private good.
B. legal services generate positive externalities.
C. consumers of legal services lack perfect information.
D. legal services are used primarily by the wealthy.
Answer: C
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Millions of people from Mexico have migrated to the United States. This has reduced the supply of labor in Mexico and increased the supply of labor in the United States. Assume that the demand for labor in Mexico and the United States is unchanged
Then wages in the United States ________ and wages in Mexico ________. A) fall; rise B) rise; do not change C) rise; rise D) do not change; fall E) fall; fall
If perfectly competitive firms exit a market, the
A) market supply curve shifts leftward. B) price of the good or service falls. C) profits of the remaining firms decrease. D) output of the industry increases.
To maximize total surplus with a monopoly firm, a benevolent social planner would choose the level of output where
a. MR = MC. b. MR intersects the demand curve. c. MC intersects the demand curve. d. MR exceeds MC by the greatest amount.
Suppose the required reserve ratio was 10% and then it increased to 20%. This would
a) result in a drop in the money multiplier from 10 to 5. b) increase the amount of excess reserves available. c) result in an increase in the money multiplier from 5 to 10. d) have no impact on the money multiplier.